A. Harikumar
On the fifth of April, representatives of a newly formed confederation of organisations of contractors in the construction sector in Kerala met at the quiet state capital Thiruvananthapuram, to find ways to surmount the crisis that has engulfed the construction sector in the state. At the meet they vowed to fight together for their survival and development of Kerala, irrespective of their political leanings.
The contractors revealed that they were on the verge of committing suicide because of soaring prices of construction materials and a host of factors, and exasperated at the failure of authorities to provide a solution despite repeated pleas. The contractors said government works in the state would soon come to a grinding halt and the development will be derailed, if their problems are not solved.
The crux of the problem is, while the prices of construction materials have skyrocketed, the Kerala government is preparing estimates based on 2018 Delhi Schedule of Rates (DSR 2018) which takes into account the market prices of construction materials that existed several years ago., said Varghese Kannampally, convener of the confederation. While the contractors agreed that it is their responsibility to ensure quality, the estimates need to be prepared considering the current market rates of raw materials, and project designs prepared by government departments need to be technically sound and viable. They pointed out that incidents of faults in completed works are the outcome of a host of factors. Faults in completed works point to failure in quality tests and supervision also, and passing the buck to contractors isn’t fair. Former MLA and president of KGCF V.K.C Mammed Koya who spoke at the meeting said the tendency to sacrifice only contractors for the fault in the projects is unacceptable.
Meanwhile in Gujarat
Meanwhile, a day later, at a function at Ahmedabad, a busy industrial city in the state of Gujarat in Western India, Gujarat Contractors’ Association felicitated the state chief minister Bhupendra Patel for helping the industry face the rising cost of construction materials by revising the tender rates for ongoing projects. Earlier, the chief minister had agreed to revise the rates, but added that he wanted superior quality works. “Quote a higher price in tender, but quality work should be done,” said Mr. Patel. Gujarat minister for roads, building and transport, Purnesh Modi and other ministers were also present at the function. Mr. Patel added that he had tried to become a contractor during his younger days and knew how difficult it is to execute government works. He said his maiden work for ONGC ended in a loss and he left the field thereafter.
The Gujarat Contractors’ Association pointed out that the cost of construction materials including cement, steel, bricks, gravel and bitumen have spiked by 40 percent or more over a year. Labour charges and transportation costs have also surged. The Gujarat Contractors’ Association said that the rising prices of raw materials have made construction of government funded projects including construction of 1.5 lakh houses under Pradhan Mantri Aawas Yojana almost impossible.
Back to Kerala
The rise in cost of construction materials in Kerala is far higher than in Gujarat, but the state government is yet to give relief to contractors suffering from price rise. Of late, the Kerala government is also trying to raise the quality of work. A few days ago while inaugurating renovation of 10 roads and two bridges as part of the 100 day action plan of LDF Government, the state PWD minister P.A. Muhammad Riyas said the goal of the government is completion of projects on time and ensuring superior quality.
Leaders of the confederation of contractors are of the opinion that to ensure quality, revision of rates is also necessary. They want variable rate clause to be included in all government contracts so that both government and contractors won’t suffer because of the volatility in the market. The confederation of Kerala contractors is of the opinion that minister Mr. Riyaz is sympathetic to their grievances. But Kerala’s administrative systems have an inertia and it’s a tough task to change them. Quality costs everywhere in the world. Kerala cannot be an exception.
As long as the departments werd supplying cement steel and bitumen there was no problem. It was intensionaly remooed 2002 by the then commerce ministet G O I
People were thrown to open market. Then afterwards contrCtors face this problem.
Kindly give the both state associations address. I shall send some details
V Ramachandran
Past president
Builders Association of India
E mail Id;vraman1940@yahoo.co.in
In Kerala most of the Politico-Bureaucratic Alliances Business Group are in the business at benamy involvement to white wash black money. Secondly Rock Sand rock cutting Forest Coup business are also in the hands of Politico-Bureaucratic Alliances Business Group. To public the same group will declare price and public having no alternate option
Court also with vested interest that bridges are collapsing before or imme6after inauguration. Prima face Engineer who inked completion report satisfactorily are not imprisoned at life time.
Court judges becomes billionaires while retirement. Vigilance Officials as well.
Where were our state moving towards!?!
Now contractors must change all their work into Steel Structures with Pre Fab. 35 to 45% price variation is more than enough to get sustainable income till present delapidated condition of CM & Son-in-law Ruling system ends!?!